OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Rider Insurance Company (Rider) (Woodbridge, NJ). The outlook assigned to these Credit Ratings (ratings) is stable.
These rating assignments follow Palisades Safety and Insurance Association’s (PSIA) acquisition of Rider on Oct. 17, 2019, and the recent successful execution of a quota share reinsurance agreement between the two entities. The ratings of PSIA have been extended to Rider due to the significant level of reinsurance support provided by PSIA, the lead member of Palisades Group. The ratings of the other members of Palisades Group are not affected by the aforementioned rating action.
The ratings reflect Rider’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Rider provides motorcycle liability and physical damage coverages. The company plans to continue to operate in New Jersey and Pennsylvania, while all business written in other states will be placed with unaffiliated carriers or nonrenewed. Three surplus notes totaling $3.0 million that were issued by Rider in exchange for cash were retired at the time of acquisition.
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